Two customers in terms of customer lifetime value

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Reference no: EM132267060

For the information given, rank the two customers in terms of customer lifetime value.

Avg. Annual Sales Avg. Profit Margin Expected Lifetime

Customer A: $3,500 15 % 10 years

Customer B: $4,000 14 % 8 years

Use a discount rate of 8 percent and treat the average sales figures as annuities. Show all your work for partial credit.

Reference no: EM132267060

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